Photoshop Elements 9 and iPhoto

Hi
I am still struggling with compatiblity between these 2. I have set PSE 9 as my external photoeditor. When I double click on a jpeg thumbnail in iphoto it opens PSE but doesn't transfer the image. I can only transfer the image by dragging it across.
This is more of a hiccup than a major problem. However, after editing, I save my image by clicking jus the save button and it takes it to another file outside iphoto although I have set it to be saved directly over the original. Then when I come to import these edited images into the photo library, only some of them will import. For the rest I get the message " Unreadable Files 1. The following file could not be imported (The file is in the iPhoto Library)."
In case it makes any difference, the actual editing involves adding a layer with my company logo and adjusting the lighting; nothing very sophisticated.
I'm just trying to get all my photos together so I can upload them onto my website but they are now all over the place! Help? Please?!

Welcome to the Apple Discussions. If you edit a photo and end up with one that has layers and want to keep the layered version you must save it to the Desktop and import as a new file. Otherwise the following may be of some help is using PSE from within iPhoto.
Using Photoshop (or Photoshop Elements) as Your Editor of Choice in iPhoto.
1 - select Photoshop as your editor of choice in iPhoto's General Preference Section's under the "Edit photo:" menu.
Click to view full size
2 - double click on the thumbnail in iPhoto to open it in Photoshop. When you're finished editing click on the Save button. If you immediately get the JPEG Options window make your selection (Baseline standard seems to be the most compatible jpeg format) and click on the OK button. Your done.
3 - however, if you get the navigation window
Click to view full size
that indicates that PS wants to save it as a PS formatted file. You'll need to either select JPEG from the menu and save (top image) or click on the desktop in the Navigation window (bottom image) and save it to the desktop for importing as a new photo.
This method will let iPhoto know that the photo has been editied and will update the thumbnail file to reflect the edit..
NOTE: With Photoshop Elements 9 the Saving File preferences should be configured as shown:
Click to view full sizes
I also suggest the Maximize PSD File Compatabilty be set to Always.
In PSE’s General preference pane set the Color Picker to Apple as shown:
Click to view full size
NOTE: If you want to use both iPhoto's editing mode and PS without having to go back and forth to the Preference pane, once you've selected PS as your editor of choice, reset the Preferences back to "Open in main window". That will let you either edit in iPhoto (double click on the thumbnail) or in PS (Control-click on the thumbnail and seledt "Edit in external editor" in the Contextual menu). This way you get the best of both worlds.

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